Bill Filed in Congress Seeks to Abolish Travel Tax in the Philippines

A measure seeking the immediate abolition of the Philippines’ travel tax has been filed in the House of Representatives.

House Bill No. 7443, authored by Ilocos Norte 1st District Representative Ferdinand Alexander A. Marcos, proposes removing the travel tax currently imposed on passengers leaving the country, citing its financial burden on Filipino travelers and its potential impact on tourism growth.

Proposal to Remove Travel Tax

The bill, titled the Travel Tax Abolition Act of 2026, aims to repeal provisions under Presidential Decree No. 1183 and related sections of Republic Act No. 9593, also known as the Tourism Act of 2009, which authorize the collection of travel taxes.

Under current regulations, Filipino travelers are charged ₱2,700 for first-class passages and ₱1,620 for economy-class travel. According to the explanatory note of the bill, these charges can significantly impact families, with travel tax costs potentially reaching ₱6,480 for a family of four.

The proposed measure argues that eliminating the travel tax would reduce travel expenses, promote mobility, and stimulate economic activity in tourism-related industries.

Economic and Tourism Implications

The explanatory note states that travel taxes may discourage both domestic and international travel by increasing the overall cost of trips. It also noted that several ASEAN member countries have already removed similar levies to boost tourism and regional integration.

The measure further highlights that abolishing the travel tax could benefit sectors such as hospitality, transportation, retail, and tour operations by increasing traveler volume. It also suggests that lowering travel costs may allow more Filipinos to explore local and international destinations, potentially improving cultural exchange and economic opportunities.

Refund and Transition Provisions

If passed into law, the bill prohibits any government agency or private entity from collecting travel taxes once the measure takes effect. It also requires authorities to immediately refund travel taxes already collected for flights scheduled on or after the implementation date.

To compensate for funding previously generated by travel taxes, the bill proposes allocating resources through the General Appropriations Act to the following agencies:

• The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) for tourism development projects
• The Commission on Higher Education (CHED) for tourism-related educational initiatives
• The National Commission for Culture and the Arts (NCCA) for cultural development programs

The bill also directs relevant agencies to create implementing rules and regulations within 60 days of the law’s approval to ensure a smooth transition to government-funded programs.

Legislative Status

House Bill No. 7443 was filed during the First Regular Session of the 20th Congress. As with other proposed measures, it will undergo committee review and deliberation before it can proceed through the legislative process.

What This Might Mean for Filipino Travelers

If approved, the abolition of the travel tax could lower the overall cost of international travel for Filipinos. Removing the ₱1,620 economy-class tax and ₱2,700 first-class tax may allow travelers to reallocate their budgets toward accommodations, food, tours, and other travel-related expenses.

For families traveling abroad, the removal of the tax could result in noticeable savings. For example, a family of four currently paying travel taxes could save several thousand pesos per trip, potentially making overseas travel more accessible.

Lower travel costs may also encourage more frequent travel among Filipinos, both for leisure and business purposes. Increased outbound travel could contribute to stronger cultural exchanges and expanded global exposure for Filipino travelers.

However, the bill also proposes shifting funding for tourism infrastructure, education, and cultural programs to the national budget. The long-term effects of this funding transition may depend on future government appropriations and implementation strategies if the measure becomes law.

How the Bill Could Become a Law

For House Bill No. 7443 to become a law, it must first be reviewed and approved by lawmakers in the House of Representatives. If it passes, it will then be sent to the Senate for its own review and approval.

If both chambers agree on the same version of the bill, it will be forwarded to the President, who may sign it into law, veto it, or allow it to lapse into law if no action is taken within the constitutional period.

Once enacted, government agencies will create the rules and procedures needed to implement the measure, including refund processes and funding adjustments.